US 'Secretly' Installs Trackers In China AI Chip Shipments To Prevent Diversion: Report
These shipments may include chips from top US firms like Nvidia and AMD, installed in servers made by companies such as Dell and Super Micro
US authorities have secretly embedded location tracking devices in shipments of advanced chips suspected of being illegally diverted to China, according to a report by Reuters. The move is part of a broader effort to enforce export controls aimed at limiting China's access to cutting-edge American technology.
Citing sources with direct knowledge of the previously unreported tactic, the report said the trackers are hidden inside packaging of AI server shipments under investigation.
These shipments may include chips from top US firms like Nvidia and AMD, installed in servers made by companies such as Dell and Super Micro.
The trackers are meant to alert US officials if restricted chips end up in countries like China, in violation of export rules. The measure only applies to selected shipments considered high-risk.
According to the sources, some trackers are small and concealed within the servers, while others are larger—about the size of a smartphone—and fixed to the exterior packaging. In one case from 2024, a shipment of Dell servers with Nvidia chips reportedly included both types of trackers.
The US began restricting exports of advanced chips to China in 2022, citing concerns over their potential military use. Washington has since tightened those controls, though the Trump administration has recently signalled some openness to easing certain restrictions.
The trackers help build legal cases against companies or individuals violating export controls, said the sources, who requested anonymity due to the sensitivity of the matter.
US agencies reportedly involved in the operations include the Department of Commerce's Bureau of Industry and Security, Homeland Security Investigations, and the FBI.
Location tracking has long been used by US law enforcement in export control cases, including for aircraft parts. Its use in semiconductor shipments reflects how seriously the US is taking enforcement in the AI chip sector.
The White House and Congress have also proposed making location verification technology mandatory in all high-end US chips, to ensure compliance with export rules.
China has strongly criticised the US approach, calling it an attempt to suppress its technological rise. Last month, China's cyberspace regulator summoned Nvidia to raise concerns about alleged 'backdoors" in its chips, claims the company has denied.
(With inputs from Reuters)
view comments
First Published:
Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Indian Express
10 minutes ago
- New Indian Express
Harvard and Trump administration are nearing settlement including a $500 million payment
WASHINGTON: Harvard University and the Trump administration are getting close to an agreement that would require the Ivy League university to pay $500 million to regain access to federal funding and to end investigations, according to a person familiar with the matter. The framework is still being sorted out with significant gaps to close, but both sides have agreed on the financial figure and a settlement could be finalized in coming weeks, according to the person who spoke to The Associated Press on the condition of anonymity to discuss internal deliberations. Harvard declined to comment. The agreement would end a monthslong battle that has tested the boundaries of the government's authority over America's universities. What began as an investigation into campus antisemitism escalated into an all-out feud as the Trump administration slashed more than $2.6 billion in research funding, ended federal contracts and attempted to block Harvard from hosting international students. The university responded with a pair of lawsuits alleging illegal retaliation by the administration after Harvard rejected a set of demands that campus leaders viewed as a threat to academic freedom. Details of the proposed framework were first reported by The New York Times. A $500 million payment would be the largest sum yet as the administration pushes for financial penalties in its settlements with elite universities. Columbia University agreed to pay the government $200 million as part of an agreement restoring access to federal funding, while Brown University separately agreed to pay $50 million to Rhode Island workforce development organizations. Details have not been finalized on where Harvard's potential payment would go, the person said. The Republican president has been pushing to reform prestigious universities that he decries as bastions of liberal ideology. His administration has cut funding to several Ivy League schools while pressing demands in line with his political campaign. None has been targeted as frequently or as heavily as Harvard, the richest US university with an endowment valued at $53 billion. More than a dozen Democrats in Congress who attended Harvard cautioned against a settlement on Aug. 1, warning the university it may warrant 'rigorous Congressional oversight and inquiry.' Capitulating to political demands, they said, would set a dangerous precedent across all of higher education.
Indian Express
10 minutes ago
- Indian Express
Trump revokes Biden-era order on promoting US economic competition
US President Donald Trump on Wednesday formally revoked a 2021 directive issued by his predecessor Joe Biden to promote competition in the US economy, the White House confirmed. The official order states: 'By the authority vested in me as President by the Constitution and the laws of the United States of America, it is hereby ordered: Section 1. Revocation. Executive Order 14036 of July 9, 2021 (Promoting Competition in the American Economy), is hereby revoked.' The statement also clarifies that the revocation does not impair existing legal authorities of federal agencies, and will be implemented in accordance with applicable laws and 'available appropriations', and does not create any 'enforceable rights.' Biden's 2021 order was designed to stop unfair corporate practices. His administration said these included things like excessive airline fees and large mergers that raise prices for consumers. The policy was a major effort supported by advisers connected to Senator Elizabeth Warren, who helped set up the Consumer Financial Protection Bureau (CFPB) during Barack Obama's presidency. The CFPB is a government agency meant to protect people from unfair treatment by banks, credit card companies, and other lenders. Trump has long opposed the CFPB and announced plans to reduce its staff by 90%. Consumer advocates say cutting back the agency's work has already cost Americans about $18 billion in extra fees and lost compensation from corporate wrongdoing, according to a June study by the Student Borrower Protection Center and the Consumer Federation of America. As reported by Reuters, the DOJ welcomed Trump's decision, saying it fits with its 'America First Antitrust' approach. Antitrust laws are designed to prevent companies from getting too much market power and blocking fair competition. The DOJ said this new direction would focus on encouraging free markets and avoid what it called Biden's 'overly prescriptive and burdensome approach.' It also plans to simplify the review process for mergers under the Hart-Scott-Rodino Act and bring back more targeted consent decrees – legal agreements used to stop or prevent certain business practices without a trial. Meanwhile, Hannah Garden-Monheit, who directed competition policy under Biden, accused Trump of abandoning protections for small businesses and workers. 'This shows President Trump's claim he would 'Make America Competitive Again' was a sham. Instead of enforcing the competition laws, he's throwing Main Street businesses and workers under the bus while doing favors for the rich and powerful,' she said, as per Reuters. (With inputs from Reuters)
The Hindu
10 minutes ago
- The Hindu
Elon Musk's bid to dismiss OpenAI's harassment claims denied in court
A U.S. federal judge on Tuesday denied Elon Musk's bid to dismiss OpenAI's claims of a "years-long harassment campaign" by the Tesla CEO against the company he co-founded in 2015 and later abandoned before ChatGPT became a global phenomenon. In the latest turn in a court battle that kicked off last year, U.S. District Judge Yvonne Gonzalez Rogers ruled that Musk must face OpenAI's claims that the billionaire, through press statements, social media posts, legal claims and "a sham bid for OpenAI's assets" had attempted to harm the AI startup. Musk sued OpenAI and its CEO Sam Altman last year over the company's transition to a for-profit model, accusing the company of straying from its founding mission of developing AI for the good of humanity, not profit. OpenAI countersued Musk in April, accusing the billionaire of engaging in fraudulent business practices under California law. Musk then asked for OpenAI's counterclaims to be dismissed or delayed until a later stage in the case. OpenAI argued in May its countersuit should not be put on hold, and the judge on Tuesday concluded that the company's allegations were legally sufficient to proceed. A jury trial has been scheduled for spring 2026.
